Dialog Semiconductor’s share price was heavily penalized and is now in an oversold situation near to a solid support area.

Currently the stock is oversold and, in the mid-term, it is trading in a bearish trend. In the short term, this trend is reversed upon contact with the EUR 13.7 area. Dialog Semiconductor should be able to confirm its increase in the next trading sessions. This support is a trading opportunity in order to anticipate a technical rebound towards EUR 14.62 and by extension towards EUR 15.72.

So as to make the most of a potential technical rebound of Dialog Semiconductor, it seems opportune to take a long position at the current price. A confirmation of this pattern would enable the security to reach the EUR 15.72 resistance, with a potential gain of 12 %. Investors should not insist under EUR 13.7 and are better to place a stop loss order under this threshold.